HomeMy WebLinkAbout#4048 - Redevelopment Agreement between the City of Canton and Royal Hospitality CERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF
CANTON,ILLINOIS,AND THAT THE CITY COUNCIL AT A REGULARLY CONSTITUTED
MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE 18TH DAY OF
OCTOBER, 2016 ADOPTED ORDINANCE NO. 4048, A TRUE AND CORRECT COPY OF
WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 18TH DAY OF OCTOBER, 2016.
(SEAL)
c &
� A APAVLEY-ROCK
CITY CLERK
CITY OF CANTON
ORDINANCE NO. 4048
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
ROYAL HOSPITALITY, LLC
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON
THE 18TH DAY OF OCTOBER, 2016
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS,
THIS 18TH DAY OF OCTOBER, 2016
EFFECTIVE: OCTOBER 18, 2016
CITY OF CANTON
FULTON COUNTY, ILLINOIS
ORDINANCE NO. 4048
CANTON 2—RT. 9 / CHESTNUT STREET
TAX INCREMENT FINANCING(TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
ROYAL HOSPITALITY,LLC
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 18" DAY OF OCTOBER,2016.
CITY OF CANTON, ILLINOIS: ORDINANCE NO.
CANTON 2—RT. 9 / CHESTNUT STREET
TAX INCREMENT FINANCING (TIF)DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
ROYAL HOSPITALITY,LLC
NOW THEREFORE, BE IT ORDAINED BY THE CORPORATE AUTHORITIES OF
THE CITY OF CANTON, ILLINOIS THAT:
I. The Redevelopment Agreement by and between the Cin-of Canton, Fulton County,
Illinois and Royal Hospitality,ITC (Ipvhihi/A attached) is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of
the Cin- said Redevelopment Agreement and the City Clerk of the City of Canton is
hereby authorized and directed to attest such execution.
3. The Redevelopment Agreement shall be effective the date of its approval on the 18'x'
day of October, 2016.
4. This Ordinance shall he in full force and effect from and after its passage and
approval as required by lain.
_7 Ge rrmninder a al this page it inientional/1'blank.
PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the Cin-of
Canton, Fulton County,Illinois, on the 18th day of October, A.D.,2016,and deposited and Filed in
the Office of the City Clerk of said City on that date.
ALDERMEN AYE VOTE NAY VOTE ABSTAIN /ABSENT
Alderman Ryan Mayhew
Alderman JL.,P.,15t5n
Alderman Tad Putsch 3bg /-
AldermanCraigR'cst
Alderman Gerald Ellis
Alderman Justin Nelson
Alderman J oh n Lovell "74
Aldersyoman Angela flak nix C --r—
TOTAL VOTES 5 O
APPROVED: jet- Date /l / o/ /2016
et Fr NI,s-or im of Canton
ATTEST: (CIC ,Date: I I / f /2016
Dl, Pavley- ock, City Clerk,City of Canton
ATTACHMENT:
EXHIBIT A: Redevelopment Agreement by and between the City of Canton, Fulton County, Illinois and Royal
Hospitality,LLC
-4-
•
EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
ROYAL HOSPITALITY,LLC
CANTON 2—RT. 9 / CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
5
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
ROYAL HOSPITALITY, LLC
CANTON 2 - RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
OCTOBER 18, 2016
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
ROYAL HOSPITALITY,LLC
CANTON 2-RT. 9/CHESTNUT STREET TIF DISTRICT
THIS REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 18` day of
October, 2016, by and between the Cin' of Canton (the `City"), an IWnois Municipal Corporation,
Fulton County, Illinois, and Royal Hospitality, LLC, an Illinois limited Liability- Corporation (thy
"Deu eloper").
PREAMBLE
WHEREAS, the City has the authority to promote the health, safety and welfare of the City and its
citizens,and to prevent the spread of blight and deterioration and inadequate public facilities,including
sanitary sewer, by promoting the development of private investment in the marketability-of property
thereby increasing the tax base of the Cin-and providing employment for its citizens; and
WHEREAS, Pursuant to 65 ILCS 5/8-1-25, a municipality may appropriate and expend funds for
economic dexelopment purposes, including without limitation for commercial enterprises that arc
deemed necessary or desirable for the purmc titin of economic development within the community;and
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65II CS5/1 I-74.4 et seq.,
as amended (the "Act'), the Ow has the authority to provide incentives to owners or prospective
owners of real property to redevelop, rehabilitate and/or upgrade such property by reimbursing the
owner for certain costs from resulting increases in real estate tax revenues('real estate tax increment')
or from other City revenues;and
WHEREAS, on February 6, 2012, recognizing the need to foster the development, expansion and
revitalization of certain properties which are vacant,underutilized or obsolete or a combination thereof,
the Cin approved a Tax Increment Financing Redevelopment Plan and Projects(the"Plan"),designated
a Redevelopment Area and adopted Tax Increment Financing as provided under the Act for the Canton
2-Int. 9/Chestnut Street TIF District(the "TIB District"); and
WHEREAS,included in the Redevelopment Project Area is property currently owned by the City and
to he acquired by the Developer, located at 920 West Locust Street, Canton, Illinois, real estate tax
property identification numbers 09-08-28-404-001 and 09-08-28 404-002 (the "Property");and
WHEREAS,the Developer will acquire said Property and is proceeding with plans to construct a hotel
thereon which mill contain approximately 60 rooms,indoor pool,fitness center and conference room
(the"Project(, and is doing so based on the availability of TIF incentives offered by the City;and
WHEREAS,this Agreement is contingent,in its entirety,on the sale of the Property from the City to
the Developer in exchange for the purchase price of Twenty--Five Thousand Dollars (525,000.00) (sec
'Real Estate Purchase Agreement'attached hereto as Exhibit "1');and
WHEREAS, it is the intent of the City to encourage economic development which will increase the
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real estate tax revenue of the City, which increased incremental taxes will be used,in part, to finance
incentives to assist development within the Tax Increment Financing District; and
WHEREAS,the Developer's proposed Project is consistent with the TIF District Redevelopment Plan
and Projects for the Redevelopment Project Area and further conforms to the land uses of the City-as
adopted; and
WHEREAS, pursuant to Section 5/11-74.4-4k) of the Act, the City may make and enter into all
contracts with propene owners, developers, tenants, overlapping taxing bodies,and others necessan'
or incidental to the implementation and furtherance of the Redevelopment Plan;and
WHEREAS,pursuant to Section 5/11-74.4-4th of the Act,the Cin'may incur project redevelopment
costs and reimburse developers who incur redevelopment project costs authorized by a redevelopment
agreement and further defined in Section 5/11-74.4-3(q) of the Act,including those Estimated TIF
Eligible Project Costs as herein listed in the attached Exhibit"2"of this Redevelopment Agreement;
and
WHEREAS, the Developer requested that incentives for the development be provided by the City
from incremental increases in real estate taxes of the City generated from its Project and the City agreed
to such incentives; and
WHEREAS, the City has determined that this Project required the incentives requested as set forth
herein and that said Project will,as a part of the Plan,promote the health,safety and welfare of the City
and its citizens by attracting private investment to prevent blight and deterioration and to generally
enhance the economy of the City;and
WHEREAS, the City has reviewed the conditions of the Property and has reason to believe that the
costs of the necessary public and private improvements to be incurred by the Developer in furtherance
of the Project are eligible project costs under the Act and arc consistent with the Redevelopment Plan
of the City; and
WHEREAS, the Parties have agreed that the City shall reimburse the Developer for its TIE Eligible
Project Costs as set forth in Exhibit "2"an amount not to exceed One Million Seven Hundred
Thousand Dollars ($1,700,000.00)as set forth below;and
WHEREAS,in consideration of the execution of this Agreement, the Developer is completing the
Project as set forth in Exhibit"2",and
WHEREAS, the Cir is entering into this Agreement having encouraged and induced the Developer
to proceed with the Project located on said Property'.
AGREEMENTS
NOW, THEREFORE, the Parties, for good and valuable consideration, the receipt of which is
acknowledged,agree as follows:
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A. PRELIMINARY STATEMENTS
1. The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Act, unless indicated to the contrary.
3. The Developer shall remain in compliance with all municipal ordinances relating to property
development, pmpertv omdition, zoning, subdivision and building codes. Failure to cure the
violation of any such ordinance within thing(30)days upon being provided written notice of the
same by the City shall be cause for th City to declare the Developer in Default and unilaterally
terminate this Agreement,except where such failure is not reasonably susceptible to cure within
such 30-day period, in which case the Developer shall have such additional time to cure as is
reasonably necessary,provided that the Developer has commenced such curewithin such 30-day
period and continues to diligently prosecute the same to completion.
4. The Developer shall complete the Project within sixteen (16) mom hs from the dare this
Agreement is executed, subject to extension due to Force Majeure(defined below).
5. This Agreement is contingent in its entirely on the sale of the Property from the City to the
Developer in exchange for the purchase price of Twenty--Five Thousand Dollars (S25,000.00).
6. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. ADOPTION OF TAX INCREMENT FINANCING
The City has created a 'lax Increment Financing District known as the `Canton 2 - Rt. 9/Chestnut
Street TIF District' which includes the Developer's Property. The Cit- has approved certain
Redevelopment Project Costs,including the types described in Exhibit"2"for the Developer's Project
which shall be hereafter known as the"Multimillion Hotel Redevelopment Project"
C. INCENTIVES
In consideration for the Developer purchasing the Pry pem. and substantially completing the
Multimillion Hotel Redevelopment Project as set forth herein, the City agrees to extend to the
Developer the following incentives to assist the Developer's Project
1. The Village shall reimburse the Developer for its '1IF Eligible Project Costs as set forth in
Exhibit "2"and verified pursuant to tier/ion - below up to an amount not to exceed One
Million Seven Hundred Thousand Dollars($1,700,000.00)from the annual"net"incremental
increase in real estate tax generated over the base year by the Developer's Project located on the
Property as follows:
a. 100%of the annual"net"incremental increase in real estate tax generated over the base rear
EN the Developer's Project for taxes payable in years 2019 and 2020; and then
b. 'S%of the annual"net"incremental increase in real estate tax generated over the base year
Cann 2-RI.9/CMermp timet 111'l Rnml tlotpUaAry, 1_I 17 12(yin ioporcm_Itornven/ I e 3
by the Developer's Project for taxes payable in years 2021,2022 and 2023;and then
e 5066 of the annual"net"incremental increase in real estate tax generated over the base year
by the Developer's Project for taxes payable in years 2024 through and including year 2036.
2. in no event shall the total cumulative reimbursement paid to the Developer hereunder exceed
One Million Seven I lundred Thousand Dollars (S1200,000.00).
3. "flet'real estate tax increment is defined as increases in annual real estate tax increment derived
from the Developer's Project after payment of the proportionate amount of administrative fees
and costs incurred by the Cin' and payments pursuant to TIF District Intergovernmental
Agreements, if any. The Developer's proportionate amount is calculated by dividing the
increment generated by the Developers Project by the total TIF District increment.
4. In the evem the Developer sells or otherwise conveys the property,absent a written assignment
to the subsequent owner of the Property that has been accepted by the Village pursuant to Section
N below any reimbursements remaining to be paid to the Developer hereunder shall cease and
this Agreement shall terminate.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. The Developer shall be reimbursed by the City for all TIP Eligible Project Costs permitted by
the Act(subject to a limitation of Si 700,000.00) and as set forth in Exhibit "2"from the real
estate tax increment generated by this Project located on the Property,but only for the term of
the Agreement and only from the Property included in this Project and currently owned by the
Developer at that location. The parties may add additional phases and eligible project in excess
of the amount authorized by this Agreement upon mutual agreement.
2. It is not contemplated nor is the City obligated to use any of its proportionate share of the
monies for any of the Developer's Eligible Project Costs but, rather,the City shall use its sums
for any purpose under the Act as it may in its sole discretion determine.
3. The Developer agrees to substantially complete the project,subject to Force Majeure,as defined
below,
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the Developer for IIF Eligible Project Cosa as set forth by dw Act,shall be made
by a Requisition for Payment of Private Development Redevelopment Costs (Exhibit "3",
"Requisition") submitted from time to time by the Developer to die City's 't IF Administrator
jncob & Klein, Ltd., with copy to The Economic Development Group, Ltd. (collectively, the
"Administrant"),and subject to the Administrator's approval of the costs and to the availability
of funds in the Special Account.
2. All Acquisitions must he accompanied In'verified bills or statements of suppliers,contractors or
professionals together with mechanic's lien waivers (whether partial or full) from each of the
parties entitled to a payment that is the subject of the Requisition as required by the City.
3. In order for the Developer to receive reimbursement of Eligible Project Costs for costs it has
Can:on2•Rt. 9/Cbemon dint lllj Rv;oli hpimlitr,Ll,C lka 1p Lgzem^m/ Pro 4
incurred in any year as set forth in Paragrnpha / and 2 above, the Developer must submit such
proposed eligible costs to the City by March 1 of the following year. If there are no accumulated
outstanding costs previously submitted and approved by the Cin-and if the Developer does not
submit such proposed eligible costs by this deadline, the Developer will forfeit reimbursement
of such costs from the prior year's real estate tax increment to be paid in the current year. Any
approved eligible costs submitted after this deadline will be eligible for reimbursement from the
next year's real estate increment receipts.
4. Any real estate increment not required to be paid to the Developer under the terms of Paragraph
3 above shall be available to the City for any purpose set forth in the TIF Plan and allowed by
the Act.
5. The Developer shall use such sums as reimbursement for Eligible Project Costs only to the
extent permitted by law and the Act and may allocate such funds for any purpose for the terms
of this agreement or the term of the TIF District whichever is longer.
6. The Administrator shall approve or disapprove a Requisition by written receipt to the Developer
within thirty (30) business days after receipt of the Requisition. Approval of the Requisition will
not be unreasonably withheld. If a Requisition is disapproved by the Administrator the reasons
for disallowance will be set forth in writing and the Developer may resubmit the Requisition with
such additional information as may be required and the same procedures set forth herein shall
apply to such re-submittals.
7. All TIE Eligible Project Costs approved shall then be paid by the City from the Special Account
to the Developer,or to others as directed by the Developer,pursuant to the Redevelopment Plan
and as allowed by Illinois Law.The City shall pay such approved eligible Costs annually,provided
the Developer has satisfied the terms of this Agreement and costs which exceed the amount
available to pay the Developer shall cam forward, until paid, without further action of the
Developer. Payment shall be made within forty-five(45)days after approval subject to the terms
if this Agreement and after receipt of the increment generated by the Developer's
Redevelopment Project from the County-.
8. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore,
qualification for reimbursement hereunder are subject to changes or interpretation made by
amendments to the Act, administrative rules or judicial interpretation during the term of this
Agreement.The City has no obligation to the Developer to attempt to modify those decisions
but will assist the Developer in every respect as to obtaining approval of IUigible Project Costs.
9. The Developer may submit for prior approval by the City as Eligible Project Costs under the Act
estimates of costs before they are incurred subject to later confirmation by actual bills.
F. VERIFICATION OF TAX INCREMENT
1. It shall be the sole responsibility of the Developer or its designee to provide to the City,as
requested in writing, copies of all PAID real estate tax bills,annually, for the Property.
2. The failure of Developer to provide any information required herein after written notice from
the City,and the continued failure to provide such information within(30)days after such notice,
shall be considered a breach of this Agreement and shall be cause for the City to deny payments
Lonront RI. 9/Chesnut;Snot IIP/ RamalHop/dir, I.1 X Reda/P r_I„rcimmr 1,a;e5
hereunder to the Developer, which payments are conditional upon receipt of the foregoing
information.
G. REIMBURSEMENT OF THE DEVELOPER'S SHARE
OF TAX OBJECTION REFUNDS
if a refund of tax increment(including any accrued statutory interest thereon) is potentially due from
the Gin-'s TIF Fund as the result of any tax objection, assessment challenge or formal appeal to the
Illinois Property Tax Appeal Board (PI AB), issuance of a certificate of error or other such action,
including any appeals therefxim,concerning the potential reduction of assessed value of the Property,
the City may at its sole discretion withhold the Developer's share of any such possible refund(including
any accrued statutory interest thereon) from furore reimbursements calculated to be paid to the
Developer under this Agreement. Furthermore,the Developer is hereby obligated to provide written
notice to the City within five(5)days of filingany such objection,assessment challenge or formal appeal
to the PTAH or other such action, including any appeals therefrom,that could potentially reduce the
assessed value of the Property. Failure to provide such notice shall be considered a breach of this
Agreement and shall be cause for the Cit to deny payments hereunder to the Developer.
Any funds withheld by the City under this Section C shall be deposited by it into a separate interest
bearing bank account. Upon final determination of(lie assessed value of the Property, the City shall
pay to the Developer the principal amount due under this Agreement as recalculated. The Cin shall be
entitled to retain any interest earned on the account as partial payment for the administration of the
account due to the delay of the determination of the final evaluation and recalculation of the benefits
due the Developer under this Agreement.
If it appears to the Cin- that it will be unable to recover the Developer's share of any such refund
(including any accrued statutory interest thereon) from the remaining future reimbursements due the
Developer under this Agreement,the Developer shall reimburse the City for the Developer's remaining
unpaid share of such refund within thirty (30) days upon receiving written demand of the same from
the City.
Notwithstanding anything contained in this Agreement to the contrary,the obligations contained in this
Section C shall remain in effect for the remaining life of the TIP District, whether the TIP District
expires upon the current expiration of the Redevelopment Plan and Projects adopted by the City (tax
year 2035 payable 2036);at an earlier time if the City passes an ordinance terminating the TIP District;
or at a later time if the TIF District is legislatively extended. Furthermore,the obligations set forth in
this Seclion C shall survive the expiration of the Tip District if a tax objection or other such action taken
by the Developer is pending prior to the expiration of the TIP District and shall continue until final
disposition of such action.
H. LIMITED OBLIGATION
The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited obligation
to he paid solely from the Special Account.Said obligation does not now and shall never constitute an
indebtedness of the City within the meaning of any State of Illinois constitutional or 5tatuft W V provision
and shall not constitute or give rise to a pecuniary liability-of the Cin-or a charge or lien against any City
fund or require the City to utilize its taxing authority to fulfill the terms of this Agreement.
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I. CITY PUBLIC PROJECTS
The City intends to use part or all of its share of the Project's real estate increment for other public
projects within the TIF District or within Com iguous TIN Districts as allowed by law. The City shall
be eligible for reimbursement of cost of doing so,as well as other eligible a>sts incurred by the City
in the TIC District.
J. LIMITED LIABILITY OF CITY TO OTHERS FOR DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than the Developer,
nor shall the City be obligated to make direct payments to any other contractor,subcontractor,mechanic
or materialman providing services or materials to the Developer for the Developer's Project.
K. COOPERATION OF THE PARTIES
1. The Cin-and the Developer agree to cooperate fully with each other u hen requested to do so
concerning the development of the Developer's Redevelopment Project. This includes without
limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply with the
Developer,for any grant,award,subsidy or additional funding which may be available from other
governmental sources as the result of the Developer's or City's activities. This also includes
without limitation the Developer assisting or sponsoring the Cite, or agreeing to jointly apply
with the City, for any grant,award,or subsidy which may be available as the result of the City's
or the Developer's activities.
2. The Parties agree to take such actions,including the execution and delivery of such documents,
instruments,petitions,and certifications(and,in the City's case,the adoption of such ordinances
and resolutions),as may he necessary or appropriate, from time to time, to carry out the terms,
provisions, and intent of this Agreement and to aid and assist each other in carrying out said
oris,provisions, and intent.
3. The Parties shall cooperate fully with each other in seeking from any or all appropriate
governmental bodies all approvals(whether federal,state,county or local)required or useful for
the construction or improvement of property and facilities in and on the Property or for the
provision of services to the Property, including, without limitation, wetland mitigation, gas,
telephone,and electric utility services,roads,highways,rights-of-way,water and sanitary sewage
facilities,and storm water disposal facilities.
L. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment Agreement by any party hereto (the"Defaulting
Party''),which default is not cured within the cure period provided for below,then the other Party(the
`Son-defaulting Party''), may have an action for damages, or, in the event damages would not fairly
compensate the Non-defaulting Parties for the Defaulting Party's breach of this Redevelopment
Agreement, the Non-defaulting Party shall have such other equity rights and remedies as are available
to them at law or in equity. Any damages payable by the City hereunder shall be limited to the real estate
tax increment payable to the Developer under the terms of this Agreement.
In the event a Defaulting Pam-shall fail to perform a monetary covenant which it is required to perform
under this Redevelopment Agreement,it shall not be deemed to he in default under this Redevelopment
Qnrmi 2-[tlr o.stim;Sleet TIP/ Rowe lop;treo., I X:Nu/ere/op/am., 1;nwfieur P.ge]
Agreement unless it shall have failed to perform such monetary covenant within thirty (30) days of its
receipt ofa notice from a Non-defaulting Parti-specifying that it has failed to perform such monetary
covenant. In the event a Defaulting Party fails to perform any nonmonetary covenant as and when it
is required to under this Redevelopment Agreement, it shall not be deemed to be in default if it shall
have cured such default within thirty (30) days of its receipt of a notice from a Non-defaulting Party-
specifying the nature of the default, provided, however, with respect to those nonmonetary defaults
which are nor capable of being cured within such thirty(30) day period,it shall nor be deemed to be in
default if it commences curing within such thirtc (30) day period, and thereafter diligently and
continuously prosecutes the cure of such default until the same has been cured.
M. TIME;FORCE MAJEURE
For this Agreement, time is of the essence. The Developer agrees to complete this Project within
sixteen (16) months following the date of execution of this Agreement. Failure to do so shall he cause
for the Cin- to declare the Developer in default and unilaterally terminate this Agreement. However,
the Developer and the City shall not be deemed in default with respect to any obligations of this
Agreement on its part to be performed if the Developer or City fails to timely perform the same and
such failure is due in whole, or in part, to any strike, lock-out,labor trouble (whether legal or illegal),
civil disorder, inability to procure materials, weather conditions wet soil conditions, failure or
interruptions of power, restrictive governmental laws and regulations, condemnation, riots,
insurrections,war, fuel shortages, accidents, casualties, Acts of God,acts caused directly or indirectly
by the City (or the City's agents,employees or invitees)when applicable to Developer or third parties,
or any other cause beyond the reasonable control of Developer or the Cin-.
N.ASSIGNMENT
The rights (including, but not limited to, the right to payments contemplated by Section (7 of this
Agreement) and obligations (or either of them) of the Developer under this Agreement shall be fully
assignable by the Developer provided written notice is provided to the City and the Cin's consent is
obtained prior to such assignment. The City's consent shall not be unreasonably withheld provided that
the nature of the Project is not substantially changed,and further provided that the assignee is financially
capable of fulfilling the obligations of the assignor. Any such assignment shall be subject to all the terms
and conditions contained in this Agreement. Further, no such assignment shall be deemed to release
the assignor of its obligations to the City under this Agreement unless the consent of the City to the
release of the assignor's obligations is first obtained.
O. PREPAYMENTS
Should the annual incremental tax revenue generated by the Project be sufficient to pay all cost eligible
expenses prior to the expiration of the term of the Agreement,the City may,in its sole discretion,elect
to pay all then remaining payments in a single lump sum payment.
P. WAIVER
Any party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no
such waiver shall be deemed to exist unless the party waiving such right of remedy does so in writing.
No such waiver shall obligate such party to waive any right of remedy hereunder, or shall be deemed
to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement.
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Q. SEVERABILITY
If any section,subsection,term or provision of this Agreement or the application thereof to any party
or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section,
subsection,term or provision of this Agreement or the application of same to parties or circumstances
other than those to which it is held invalid or unenforceable,shall not be affected thereby-.
R. NOTICES
All notices,demands,requests,consents,approvals or other instruments required or permitted by this
Agreement shall be in writing and shall be executed by the part-or an officer,agent or attorney of the
party, and shall he deemed to have been effective as of the date of actual delivery, if delivered
personally,or as of the third (3rd) day from and including the date of posting, if mailed by registered
or certified mail,return receipt requested,with postage prepaid addressed as follows:
TO CITY: TO DEVELOPER:
Cit-Clerk,City of Canton Royal I hospitality, LI.0
2 N. Main Street c/o Ashokkumar Patel,Managing Member
Canton,IL 6152(1 458 Garner Drive
Telephone (309) 647-0020 Morton, II.61550
Telephone: (309)363-0947
Ifilb Cat' lo:
Jacob&FICIn, Ltd.
The Economic Development Group,I
1701 Clearwater Avenue
Bloomington,I1.61104
Telephone: (309) 664-7777
Fax: (309) 664-7878
S. SUCCESSORS IN INTEREST
Subject to the provisions of Section ti, above, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
T. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement nor any acts of the parties to this Agreement shall be construed by
the parties or any third person to create the relationship of a partnership, agency, or joint venture
between or among such parties.
U. INDEMNIFICATION OF CITY
It is the understanding of the Parties that the position of the Illinois Department of Labor is that the
Illinois Prevailing Wage Act does not apply to TIF increment received by private developers as
reimbursement for private TIF Eligible Project Costs. This position of the Department of Labor is
stated as an answer to a FAQ on its website at:http://www.illinois.troy/idol/FAOs/Pages/preyailinv-
waae-faq.asps. The Developer shall indemnify and hold harmless the City, and all City elected or
appointed officials, officers, employees, agents, representatives, engineers, consultants and attorneys
(collectively, the Indemnified Parties), from any and all claims that may be asserted against the
Indemnified Parties or one or more of them,in connection with the applicability,determination,and/or
payments made under the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq.), the Illinois
Gm/m/2-Rt 9/999199I Sint/171./ Row/Harp[/a1ity.LI.0 Reer,rlopmmt.lonenru/ P9 9 9
Procurement Code, and/or any similar State or Federal law or regulation. In addition, the Developer
agrees to indemnify and hold harmless the City for any claim asserted against the City arising from the
Developer's Project and/or this Agreement or any challenge to the eligibility of project costs reimbursed
to the Developer hereunder. This obligation to indemnify and hold harmless obligates Developer to
defend any such claim and/or action,pay any liabilities and/or penalties imposed,and pay all defense
costs of City,including but not limited to the reasonable attorney fees of City.
V. ENTIRE AGREEMENT
The terms and conditions set forth in this Agreement and exhibits attached hereto supersede all prior
oral and written understandings and constitute the entire agreement between the City and the Developer
with respect to the subject matter hereof.
W. TITLES OF PARAGRAPHS
Titles of the several parts,paragraphs,sections or articles of this Agreement are inserted for convenience
of reference only, and shall be disregarded in construing or interpreting any provisions hereof.
X. WARRANTY OF SIGNATORIES
The signatories of Developer warrant full authority to both execute this Agreement and to hind the
entity'in which they are signing on behalf of.
Y.TERM OF THE AGREEMENT
Notwithstanding anything contained herein to the contrary,this Agreement shall expire upon the first
to occur of the current expiration of the Canton 2-Rt.9/Chestnut Sc TIE District,tax year 2035 payable
2036, or upon the Developer receiving all incentives included herein. The Agreement shall expire
sooner if the Developer files for bankruptcy or otherwise hecomes insolvent,the Property becomes the
subject of foreclosure proceedings,or upon default by the Developer of this Agreement.
The temafnder of this pre is intentional!),;ell blank'
Cancan 2-Rt //c he mitt tits r 1117 Royal Ho pitntig, LLL Hu/eh/op/ma/-1,!nCMort Poor 10
IN WITNESS WHEREOF the Parries hereto have caused this Agreement to be executed by their
duly authorized officers on the above date at Canton, Illinois.
CITY DEVELOPER
Canton, Illinois,a Municipal Corporation Royal Hospitality, LLC, an Illinois Limited
/� Liability Corporation
BY: avt 1i1.�) BY: j ��d
ti ar rr, Cin ntrm V
NAME: ilfrh0414n1ali- A CL
ATFL- , / J
4�- -, TITI.I'.: "Lu /IV 9 ntill11
v
MY
y Clerk, .tR .ancon
Cmmrr 2-Rt 9/Oe,rern Fr r 1117 Kara/Ho prmliq. 1].6.RH/r cApmeni -twermor; Pare 11
EXHIBIT 1
REAL ESTATE PURCHASE AGREEMENT
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EXHIBIT 2
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Multimillion Hotel Redevelopment Project
Canton 2-Rt. 9/Chestnut St. TIF District in the Cin'of Canton, Fulton County,Illinois
Project Description: The Developer will be acquiring the Property and will proceed with plans to
construct a hotel thereon which will contain approximately 60 rooms,indoor
pool, fitness center and conference room.
Street Location: 920 West Locust Street,Canton,Illinois
PIN#s: 09-08-28-404-001 &09-08 28-404-002
EstimatedTlF Eligible Project Costs:
.and Acquisition $'15,000
Site Preparation, Clearing& Grading 534,000
Professional Fees (Engineering, Accounting,Legal,Architectural, etc.) 5763,000
Job Training S55,000
Utilities Extension $140,000
Public Infrastructure Improvements (Water,sewer,drainage, sidewalk, etc.) 5200000
Interest Buy-Down (3015$of Interest Expense) S483,000
Total EstimatedTlF Eligible Project Costs* $1,700,000
*The Cinhis reimbursement of TIP [eligible Project Cosa to the Dei eloper shall nor exceed Si,700,0(0.00 as ser forth in
this Radt.dopmenr Agreement.
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EXHIBIT 3
CITY OF CANTON, ILLINOIS
CANTON 2- RT. 9/CHESTNUT STREET TIF DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
ROYAL HOSPITALITY,LLC
Date
Attention: City TIF Administrator,City-of Canton, Illinois
Re: TIE Redevelopment Agreement,dated October 18,2016
by and between the City of Canton,Illinois,and
Royal Hospitality, I_LC (the"Developer')
The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund
pursuant to the Redevelopment Agreement described above in the following amount(s), to the
Developer and for the purpose(s) set forth in this Request for Reimbursement. The terms used in this
Request for Reimbursement shall have the meanings given to those terms in the Redevelopment
Agreement.
I. REQUEST FOR REIMBURSEA[EST NO.
2. PAYMENT MT TO: Royal Hospitality LLC
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIE Eligible Project Cost Amount
Total
4. The amount requested to be disbursed pursuant to this Request for Reimbursement will be used to
reimburse the Dec eloper for Redevelopment Project Costs for the Project detailed in Exhibit "1"
of the Redevelopment Agreement.
Canton 2-Rt. 9/CLemu✓.1/rect 77F/ Rc1a/Hospitably,1.1.6 Redndapmun Ageemenr Page 14
•
•
5. The undersigned certifies and swears under oath that the following statements arc true and correct:
(i) the amounts included in (3) above were made or incurred or financed and were necessary for
the Project and were made or incurred in accordance with the construction contracts,plans
and specifications heretofore in effect;and
(ii) the amounts paid or to be paid, as set forth in this Request for Reimbursement,represent a
part of the funds due and payable for TIF Eligible Redevelopment Project Costs;and
(iii) the expenditures for which amounts are requested represent proper Redevelopment Project
Costs as identified in the"Limitation of Incentives to Developer'described in Section "D' of
the Redevelopment Agreement: have not been included in any previous Request for
Reimbursement;have been properly recorded on the Developer's books; are set forth with
invoices attached for all sums for which reimbursement is requested;and proof of payment
of the invoices; and
(iv) the amounts requested are not greater than those necessary to meet obligations due and
payable or to reimburse die Developer for its funds actually advanced for Redevelopment
Project Costs;and
(v) the Developer is not in default under the Redevelopment Agreement and nothing has
occurred to the knowledge of the Developer that would prevent the performance of its
obligations under the Redevelopment Agreement.
Any violation of this oath shall constitute a default of the Redevelopment Agreement and shall because
for the Village to unilaterally terminate the Redevelopment Agreement.
6. Attached to this Request for Reimbursement is Exhibit 1' of the Redevelopment Agreement,
together with copies ol invoices,proof of payment of the invoices, and Mechanic's I len Waivers
relating to all items for which reimbursement is being requested.
BY: (Developer)
TITLE:
APPROVED BY CITY OF CANTON,ILLINOIS
BY,
TITLE: DATE:
REVIEWED BY JACOB&KLEIN,LTD.&THE ECONOMIC DEVELOPMENT GROUP,LTD.
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